Formulate a Financial Plan

Know Your Net Worth

Manage & Minimize Debt

Accumulate Assets

Budget to Live Within Your Means

Understand Investing Basics

Plan for Retirement

Insure People & Property

Deal with Financial Advisors

Review Your Employment Contract

Make Plans for Your Estate

Make Good Decisions


If all our wealth is concentrated in a single pillar, and something bad happens to that pillar, we stand to lose everything. 

It follows that our overall objective should be to collect as many different pillars as possible.

The point in having multiple pillars is to provide diversification. Diversification is a risk reduction mechanism which is best summarized by the expression—don’t put all your eggs in one basket
As an example: if all your wealth is in your private practice (you have no savings elsewhere), and the business fails, say due to a malpractice judgment, you would have no wealth left. In contrast, by spreading your wealth over multiple pillars (or assets), if one suffers a large loss, the other pillars are still there to support your financial needs. 

Appreciating vs. Depreciating Assets

Your focus should be on amassing appreciating assets—those whose value is reasonably expected to increase over the long term (e.g., real estate or diversified stock investments).

In contrast, depreciating assets are expected to lose value over time rather than increase in value (e.g., car(s), furniture, electronic equipment).

Appreciating assets directly contribute to achieving your financial goals. Depreciating assets may only do so indirectly. For example, you may need a car to get to work and earn a living, but the car itself does not represent a legitimate pillar of value.